South Africa’s inflation rate remained steady at 3.2% in February 2025, below the Reserve Bank’s target. Food inflation rose, while prices in other categories fluctuated. Core inflation hit a new low, and monthly CPI increased significantly.
In February 2025, South Africa’s inflation rate remained unchanged at 3.2%, marking its highest level in four months yet still beneath the South African Reserve Bank’s target of 4.5%. The increase in inflation was driven by food and non-alcoholic beverages, which rose to 2.8% from 2.3% in January. Conversely, inflation rates for housing and utilities saw a slight decline to 4.4% from 4.5%.
There was a notable decrease in inflation within the personal care and miscellaneous services category, dropping to 1.1% from 5.9%, while transport continued to experience deflation at -0.5%, slightly down from -0.2%. Additionally, core inflation, which excludes food, non-alcoholic beverages, fuel, and energy costs, declined to 3.4%, marking the lowest figure since December 2021.
On a monthly basis, the Consumer Price Index (CPI) experienced a significant increase of 0.9%, the highest observed in a year, rebounding from a 0.3% rise in January. This surge in the monthly CPI indicates potential shifts in consumer pricing dynamics that may warrant further analysis.
In summary, South Africa’s inflation rate has stabilized at 3.2%, remaining below the Reserve Bank’s target. While food prices have escalated, other categories such as housing and personal care have shown mixed trends. The core inflation rate has reached a new low, and recent monthly CPI growth could suggest alterations in the inflation landscape.
Original Source: www.tradingview.com
